The Montgomery County Council voted last week to withhold $2 million in county funds for Live Nation's Fillmore concert hall in downtown Silver Spring until some details are explained. The council members wanted to see the planning and land use details before releasing the other $2 million of their contribution. The county and state of Maryland are set to spend $4 million each on the Fillmore, with Live Nation and a developer adding about another $5 million in cash and land.

Council members and staffers also expressed concern about a report on the project which, among other things, noted that the county would effectively pay for construction cost overruns by crediting them against Live Nation's rent. The report was commissioned by IMP, the Montgomery-based company that runs the 9:30 Club and other large area venues, and has been opposed to the Live Nation deal, arguing that they weren't given a fair chance to compete and that the deal is too generous to Live Nation.

Live Nation would pay $7500 in rent to the county per month, which is well below market rates. The IMP report calculates that rent for the building is about $3.60 per foot, versus the market rate on the block of around $20 per foot.

In memo from a Montgomery County planning session, council staff recommend paying for the deal, but expressed concern about low rent increases (7.5 percent every five years) and the possible cost overruns. The memo ends with "The Live Nation deal is what it is."

County Executive Ike Leggett, who has been the driving force behind the deal, is pushing ahead with the deal. His spokesman Patrick Lacefield posted a 5-page rebuttal to a blog post criticizing the deal. Live Nation's Ted Mankin also emailed supporters recommending they email the County Council. Some bloggers are in favor of the deal as well.

In a follow-up story, the Gazette reported that state and county officials claim to be unfazed by the Council's action.